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tv   Bloomberg Markets  Bloomberg  July 1, 2015 11:00am-12:01pm EDT

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--olivia: good morning and welcome back to the bloomberg market day. i'm olivia sterns. pimm: i am pimm fox. let's take a look at the u.s. stock market and see how the dow jones industrial average and snp both moved higher. .6%.&p 500 gains more than of course, a busy day in the markets with the announced chub by af child -- and the greek prime minister urging voters to vote no on the referendum. pimm: the euro is off a little --olivia: the euro is off a little against the dollar, but still up since sunday when we heard the greek banks would not open. here is what has happened. alexis tsipras speaking in parliament in athens says he is
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going ahead with the referendum and called on his people to vote no. he said he is not trying to leave the country out of the eurozone but needs the country to vote no to have more leverage with creditors. at the same time in berlin we have a press conference with on july merkel and --angela merkel and renzi, the leader of italy. angela merkel says her relationship with alexis tsipras has not been damaged. we also heard matteo renzi batting back, saying we cannot have a situation where other governments are paying for greek pensions and we cannot have a situation where greek shipbuilders are not paying taxes. so, adding a little pressure to make greece institute reforms. pimm: also a rejection of the new greek proposal to accept creditor conditions but not to reform any domestic regulations they are doing with tension
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pension plans as well as payments to the private sector. i want to bring in erik schatzker, who has been standing by and reporting from athens. i am wondering if you can explain what is the state of play. the prime minister has urged a no vote. erik: the state of play is more or less as it was this morning. the only thing that is different is we woke up this morning and found out that alexis tsipras made a counter proposal to european creditors and that seems to suggest that perhaps he was willing to sit at the table and hammer out a compromise agreement. his address minutes ago closes the door on that possibility because he has made it clear he still wants to hold this referendum. it is not 100% clear to me what deal is on the table for the greeks, but nevertheless they will go to the polls on sunday and he wants them to vote no,
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which is to say reject the terms the european creditors have offered. the other thing that is a little bit crazy, i would venture to is makingipras promises to the greek people he cannot possibly honor, not in a position to honor. he cannot say pensions and deposits will be safe because greece has no money. the only way for the pensions and deposits to be safe is for the europeans to reopen the credit lines and the liquidity assistance to the financial system, and until such a time as there is a deal agreed upon, both of those avenues remain absolutely closed. you really have to wonder whether the greek people believe what their prime minister is telling them. they have been educated since 2012. they are not fresh off the turnip truck. they understand a few things about the mechanics of the bailout agreement and what has to happen if the liquidity is to be restored and credit is to be
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restored to the greek economy. i really wonder, quite honestly, if they will be persuaded by the prime minister to vote no on sunday. pimm: a no vote being urged by the prime minister of greece, alexis tsipras. erik schatzker, thank you. president obama is set to announce in a few minutes that he will reopen a u.s. embassy in havana. phil mattingly is in washington and we have been waiting for this for months. tell us about what we expect to hear. l: six months of negotiations, about 54 years of waiting to reach to this point. we know the president will announce july 20 will be the day the u.s. will allow pupil to open and embassy in washington. the u.s. will open and embassy in havana. they are not building new
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buildings. they are taking over a counselor. both countries have one as it stands. this has been coming. administrative officials have been trying to figure out how freely diplomats would be able to travel, whether or not cubans would be able to visit the u.s. embassy in havana, and other issues, human rights being chief among them and reciprocity for land taken by cuba when they broke ties with the united states in the 1960's. a lot to do, but a major step forward. pimm: this has already become a political issue. from republicans that they will not approve, not a vote for a u.s. ambassador to take up the position or -- four u.s. ambassador to cuba if that is the case. phil: that is correct. marco rubio, the florida center
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-- senator and presidential candidate, the son of cubans, said he would vote against whoever is nominated as ambassador. pimm: thank you, phil mattingly, joining us from washington. we'll go back to washington when the president higgins remarks on cuba. --via: back to the latest on when the president begins his remarks on cuba. olivia: back to the latest on greece. pimm: we're joined from london and washington. i'm wondering, can you describe for us if you were being consulted as to what would be the next step for greece and the greek government, what would it the? -- what would it be?
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hung: i think the majority of the people want to stay in the union but any to see if the program can be more balanced and stretched out. on that basis, personally, i think there is room for discussion and compromise. eric, you, --olivia: said greece can not plan a barbecue, let alone a currency. what you make of what has happened in athens, and clearly alexis tsipras sent a letter to creditors. it looks like the referendum was off the table, and we heard him say in the last step our it is on the table and he wants people to vote no. what is your reaction? eric: i think you see him being panicked. he has not thought through what it means to call the referendum and have the bank closed. people are that getting upset with him very quickly and he is losing .omentum
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i think he has tried to make a desperate attempt to come to the negotiation table, but the europeans are not having it. pimm: is there any indication there is a plan, at least as far as the european union or the european central bank is concerned regarding a greece no vote on the fifth of july? erik n.: i think it is pretty clear there is a plan b now and the is about refinancing eurozone to we have it in a sense with the kiwi program. the ec -- qe program. the ecb is buying an enormous amount of that already. -- debt already. there are plans that have not been talked about. the balkans if there should be implications for bulgaria, romania, and those countries. i think the ecb is reasonably comfortable that they can handle a scenario, but they probably do
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not hope. hung, what you think a final deal should look like? hung: based on the letter that prime minister tsipras -- me, german, we will hold you for a moment because president obama is walking out to the podium in the rose garden. obama: at the height of the cold war the united states closed his embassy in havana. today i can announce the united states has agreed to formally reestablish diplomatic relations with the republic of cuba and open embassies in a respective countries. this is an historic step forward in our efforts to normalize relations with the cuban government and people and begin a new chapter with our neighbors in the americas. when the united states shattered our embassy in 1961, i do not think anyone expected it would
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be more than half a century before it reopened. arer all, our nations separated by only 90 miles and there are deep bonds of family and friendship between our people, but there have been real, profound differences between our governments and sometimes we allow ourselves to betroth trapped by a certain way of doing things. in the nine states that meant wasging to a policy that not -- in the united states that meant clinging to a policy that was not working. despite good intentions, it had the opposite effect, cementing the status quo and isolating the united states from neighbors in this hemisphere. the progress that we mark today is another demonstration that we do not have to be imprisoned by the past. when something is not working we can and will change. last december i announced the united states and cuba decided to take steps to normalize relationships. as part of that effort, president raul castro and i directed teams to begin the reestablishment of embassies.
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since then the state department has worked hard with cuban counterparts to achieve the goal and later this summer secretary kerry will travel to have anna formally to proudly -- havana formally to proudly raised the flag once more. this is not merely symbolic. with this change, we will be able to increase contact cuban people, have more personnel at our embassy and let's will have the opportunity to engage more broadly across the island. that will include the cuban government, civil society, and ordinary cubans reaching for a better life. on issues of con interest -- common interest like counterterrorism, development, we will find new ways to cooperate with cuba and i have also been clear we will have serious differences, including america's enduring support for values like freedom of speech, assembly, and the ability to access information and will not
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hesitate to speak out when we see actions that contradict those values. however, i strongly believe the best way for america to support our values is through engagement. that is why we have taken steps to allow for greater travel, people to people and commercial ties between the united states and cuba and we will continue to do so going forward. since december we have seen enormous enthusiasm for this new approach. leaders across the americas have expressed support for our change in policy. you have heard that expressed by the president of brazil yesterday. public opinion surveys in both of our countries show broad support for this engagement. one cuban said i have prepared for this all of my life. another said this is like a shot of oxygen. one cuban teacher put it simply. we are neighbors. now we could be friends. here in the united states, we have seen that same enthusiasm. there are americans that want to travel to cuba, businesses that
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want to invest in cuba, colleges and universities that want to partner with cuba. above all, americans want to get to know their neighbors to the south and through that engagement we can out the cuban people improve their own lives. american look forward to opening lines of communications. another put it bluntly -- you cannot hold cuba hostage to what happened in the past and this is what this is about, a choice between the future and the past. americans and cubans alike are ready to move forward. i believe it is time for congress to do the same. i have called on congress to take steps to lift the embargo. we have seen members from both parties in that work. after all, why should washington stand in the way of our own people? yes, there are those that want to turn back the clock and doubled down on the policy of isolation, but it is long past time for us to realize this
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approach does not work. it has not worked for 50 years. it shuts america out of cuba's future and only makes life worse for the cuban people. congress to listen to the words of the cuban people, not only the american people, but listen to carlos gutierrez who said i wonder if the cubans who have to stand in line for the most basic necessities in the hot havana son feel this approach is helpful to them. of course, nobody expects cuba to be transformed overnight, but i believe american engagement through our embassy, businesses, and throughout people is the best way to advance our interests and support for democracy and human rights. time and again america has demonstrated that part of our leadership in the world is our capacity to change. that is what inspires the world to reach for something better. a year ago it might have seemed impossible united states would once again be raising our flag,
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the stars & stripes, over an embassy in havana. this is what change looks like. in january of 1961, the year i was born, when president eisenhower announced the termination of our relationship with cuba he said it is my hope and conviction that in the not-too-distant future it would be possible for the historic french between us -- friendship between us to find its reflection in normal relations of every sort. it took a while, but i believe that has come and the future lies ahead. thank you very much, and i want to thank some of my team worked diligently to make this happen. they are here. they do not always get acknowledged. we are really proud of them. good work. >> president, when will you go to cuba? pimm: you have been listening to president obama flanked by vice president joe biden. he just said the united states would reopen our embassy in cuba
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and that secretary of state john kerry will travel to cuba later this summer to raise the u.s. flag over the embassy. exciting stuff. for more reaction, i want to bring in phil mattingly. what jumped out to you from what the president said? phil: he made a good point. one year ago one secret back channel negotiations were going on between advisors, the cuban people, and the pope, actually, nobody would have imagined we would have been here at this point. one of the interstate things the president said multiple times and we have heard it from aids over the last couple of months, this is not symbolic. it is more than a symbol. they have a lot to prove on that front. the president pointed out there is republican opposition and there is also some democratic opposition. senator bob menendez has a lot of problems with his as well. one of the interesting things the president pointed out, public opinion surveys across both parties say people are
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supportive of this generally and this is the way things are moving and the president feels comfortable mainly because of that. olivia: thank you very much, film and the, on this news that the u.s. has taken this historic step to normalize relations with cuba. president obama same we will just -- we will restore full to the medic relations. -- diplomatic relations. still to come, we'll go back to athens, figuring out what alexis tsipras is saying, how angela merkel is reacting. the latest on greece coming up after the break. pimm: all of it. that is next. ♪
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olivia: back to the latest on greece. k want to get back to eri executivenghu, the managing director of the institute for finance. how far away are we from a big
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greek bank run? first of all, it is hard to get a bank run when all the banks are closed so we are some way away from it. a lot of people think he can get a yes vote on senate and the banks can open again. i very much doubt it. -- sunday, and the banks can open again. i very much doubt it. there is a risk of a bank run as long as we have a government that a population does not trust. olivia: the banks are essentially insolvent already. the ecb, we do not know what they are going to do, but they stopped giving them the drip, the iv of emergency liquidity assistance, and that is why they are not reopening. erik n.: that is right. the emergency facility has kept them alive and that has been frozen for now. if you get a yes vote and you
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get a prospect of a new government, my gut feeling would be the ecb will start to to get thee ela banks going, but it is a difficult problem because strictly speaking, the ela can only begin into a bank which the ecb thanks is sovereign. tough call in that situation. pimm: i am wondering if you can speak about the risk to other areas of europe, particularly business risks, for example, the port of tereus, just next to athens, the largest passenger port in europe -- what happens if it cannot function? the economic linkages and risks has been fairly contained, as has been the financial market risk that we have seen so far since monday. there will be inconveniences and so on, but the impact will be felt more negatively in greece than other parts of the euro area. erik, can you speak about
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tourism in greece and its ability to help the greek economy? key focus. is a the real issue is the economy has not been reformed. you have a malfunctioning institution and trust is disappearing. it is not an easy -- pimm: what would be an example of a reform the needs to be put in place to harmonize the greek economy with other countries in the eurozone? original plan, the massive weatherization plan to get businesses back into private hands and working on economic incentives it be the first one, and then are the fiscal issues, of course, as prime minister renzi said.
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who will pay for the pensioners in greece -- office, the italians, or the greeks? the comments from a tail renzi calling greece out for not making sufficient reforms, a situation where billionaire shipbuilders are not paying taxes. hung tran, what you think about the progress greece has made on structural reforms? hung: progress has been quite slow. they made some progress after the first program in 2010, for example, extending the retirement age, but more needs to be done because pension expenditure is the highest in 70% euro area, about 16% to of gdp and they also need to -- 17% of gdp. they also need to increase the tax rate. they have very significant reforms ahead of them. they have to do so without the
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euro area because without those, the economy cannot grow. , what is theelsen strength of the euro against the u.s. dollar tell you about the future? erik n.: it tells me there is trust in the currency despite the doom and gloom on the economy. the fundamentals right now that drive the euro -- the euro still runs an account surplus of 2.5% to 3% of gdp. france is the only eurozone country with the deficit, and it is a small one. on the capital accounts, you have a lot of people running into european companies. purchasingbuffett the motorcycle equipment company in germany, and so on and so forth. there is a natural info into europe and that pushes the euro stronger. pimm: thank you very much, erik
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nielsen and hung tran. go to a lookt to at what is happening in the markets right now. : it looks like the s&p, the dow, and the nasdaq are down. we saw them at a high of about 1%. they have been paring gains. the better-than-expected index showed manufacturing was his highest in about five months or so. looking at the major movers, peabody energy is what i want to talk about. it has plunged into the double digits, down by nearly 23%. it missed second quarter earnings because of bad weather and falling coal prices. meantrain meant heavy -- coal prices had to be cut in the
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u.s.. peabody does expect to make up the output loss. the company has posted six quarterly losses in a row and since 2011 peabody has plunged by about 98%. down natural resources is respectively. thank you very much --olivia: thank you very much, rainy and since you -- ramy. pimm: and the big deal with ace. we will have more on the booming market day coming up. i will say goodbye to you. see you in a little bit here. ♪
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pimm: welcome back to the bloomberg market day. i am pimm fox. the top stories -- we begin with a story that broke moments ago.
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the united states and cuba have agreed to open embassies in each other's capital city, a major step in restoring relations after more than five decades of hostilities. in the last six months, the united states has a move cuba from its list of state sponsors of terrorism and made it easier to travel to cuba for americans. president obama made the announcement at the white house. president obama: this is not merely symbolic. with this change we will be able to substantially increase contact with the cuban people, have more personnel at our embassy, and the mets will have the ability to engage more broadly across the island. that will include the cuban government, civil society, and ordinary cubans reaching for a better life. the embassies are expected to open july 20 and secretary of state john kerry will go to havana to raise the country's flag. upon mr. of greece alexis tsipras has -- the prime minister of greece alexis tsipras has agreed to a proposal
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as a cover mines but there are sanctions on -- compromise, but there are sanctions that could derail the deal. what peng shuai both said europe is in a new situation now that the bailout program has expired. a new report is raising questions about the link of the makers of drugs and those who prescribed them. drug and medical device companies paid out 6.5 alien dollars last year and -- billion dollars last year and much of it went to hospitals were teaching doctors. a multibillion-dollar pledge today from the saudi arabian giving away three $2 billion over the coming years to benefit both muslim and non-muslim countries according to bloomberg -- countries. prince allah will lead is the -- lwaleed is the world's third
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richest. mark barton. mark: the greek prime minister slightly derailing a close. he said greek should vote -- greece should vote no. he also said he had no intentions to lead greece out of the eurozone. a different sentiment after two days that said greece was prepared to prepare -- prepared to accept conditions with some changes. this comes one day after greece missed payments to the imf and exited the protection from its second bailout, so, definitely progress. here are some of the big gainers on european stock markets. maker,,s, the plane they won an order from china
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worth $18 million. nearly 3% today. they sold loans to oaktree capital group and j.p. morgan chase, making headway in its plan to reduce riskier assets. another german bank rising, deutsche bank. it was the first day for the co-chief executive and he pledged to cut the trading operation builds up by his predecessor and he also said he will delay presenting an update on the plan until the end of october -- by taking until the end of october to review the decision. let's not be deterred by alexis mments an hour or so before the close. preceding today, we had a two -day decline for the stock 600, decline sinceday
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september to differently a relief rally. you, mark barton. several presidential hope. our promising hopefuls are promising americans annual growth of 4%, but is this a realistic goal? we will do the math. -- willwants your mtv talk about the media company struggles and more stories ahead. breaking news in the past hour out of the middle east. militants in egypt's sinai peninsula have killed at least 50 police. let's go to our cairo euro chief on the telephone. cank, i'm wondering if you describe what has happened so .ar in the sinai
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tarek: it started in what has been the heart of the fight. they used rpg's, car bombs, apparently, and right now the toll is around 52 soldiers and police troops or police personnel. pimm: what has been the response of the president? tarek: right now the military and the police commandos are basically fighting back. what we are hearing is that have deployed apache and fighter jets to target the militant positions in and around the area. there was a fierce fight apparently from the main police station from where the islamic essentiallyate had had a late see to the area or
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the building. this attack is different than others we have seen the last year and a half where the others have been hit and run and this is more of a dug in fight. it seems to reflect a step up on the part of militancy to make their voice heard in this conflict. pimm: the militants also make their voice heard in cairo. they recently assassinated the chief prosecutor. i wonder if you can explain what happened. tarek: pali his convoy, the day before yesterday, was hit by a bomb. initial reports showed he had slight injuries, but a couple hours later they announced that he had passed away. yesterday, they buried him in a military funeral and president visiblyo was quite angered by the assassination attempt about they would exact -- vowed they would exact swift
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justice on the perpetrators. they are revising terror-related laws to make sure, for example, that if death sentences are handed down, there and lamented much quicker than they have been -- implemented much quicker than the have been an stiffening penalties for what otherwise would not have garnered as stiff a sentence as they would have liked. our: thank you very much, cairo bureau chief. also a note to the associated press now reports more than 70 soldiers have been killed in the attacks in the sinai. still ahead, we'll go to the aspen ideas festival. ernst & young chairman and chief executive michael weinberger is there any talks about the greek debt and what is next for the euro. ♪
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pimm: welcome back to the bloomberg market day. i am pimm fox. let's look at the top stories crossing terminal right now. obamacare is attracting younger and healthier people in coverage plans. the bullet signed up for coverage this year were on average four years -- the people that signed up for coverage of this year were on average four years younger than they were in 2013. presidentialon's campaign has set a record. it has raised at least $45 million in the first quarter, breaking president obama's old mark. more than 90% of the donations were for $100 or less. macy's is the latest to cut ties with beer in a presidential
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candidate donald trump. -- cut ties with billionaire presidential candidate donald trump, pulling products from the shelves. trump put out a statement saying it was his decision and he has never been happy about macy's making his ties in china. nbc fired trump earlier this week, saying they will not and the miss universe pageant and they will find a new host for "celebrity apprentice." it is the meetings of the mind as business leaders gather at the aspen ideas summit. betty liu spoke with michael weinberger earlier today. michael: the real question is everyone wonders if it will have effect, so greece in puerto rico, the economic effects are not huge other than the populations of those places, but in greece it signals a -- sense thate
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the eurozone is crumbling, that is where it gets cop located and there is a political -- complicated and there is a political and economic consequence. in puerto rico, are there other states behind it -- that is the question on people's minds. betty: let's put puerto rico aside, but greece, iran, the middle east -- the you get the sense this could be the year that it turns for us here? michael: well, the different equation we are talking about today with greece is not the euro crumbling, but the short-term market effect. the political asset -- aspect is a longer-term challenge. what does that mean for the next country that has problems? i do not think today the sovereign dent is contagious -- debt is contagious. betty: how about having a &a?ping effect on m
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michael: it is booming. it will affect valuations in the short-term, but we do something called the capital confidence survey a lotre we of different companies around the world and we are at a five-year high for interest in doing deals. more than 50% of global companies are looking to do deals. the you think six months from now you will still be at the high? michael: i would think you would because what is driving the deals is the growth that is still there. you see moves toward disruptions, trying to get his models like telephone and cable together. those issues will be there. i think confidence is therefore trying to find new opportunities form growth -- for growth. you are head of the tax policy committee.
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you are lobbying for tax reform. you have not been successful. it has been tabled for so many years. how do you expect you'll get anything done in the next 12 years? michael: it is tough. i was in government for a lot of my career to and not successful there, apparently. betty: treasury? michael: yes. the highway trust fund has gone broke. both political parties want to extend it. $2have issues overseas with billion in cash sitting there. they are trying to marry up a bunch of proposals that would provide for international reforms, maybe some things europe and other countries are doing around patent boxes and knowledge boxes, they call, and funding, thatfund issue will come. betty: do you think a trade bill
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is in some ways a good sign for what you want to do? michael: it is the canary in the coal mine. they have come together, proven they could do something, the president and republicans in congress. it took a lot longer than they hope. they still have to work through the tpp element. that will come first. then they will turn to tax. you have expiring tax provisions . if they are not extended combat is a $900 billion tax increase on businesses. go, who do youe think among the candidates will be the most from it for businesses? michael: that is a hard question. betty: would you like? michael: i like all the candidates. betty: spoken like a true ceo. michael: i hope they will work with us, whoever they are, as i want to keep those bridges open. pimm: betty liu speaking with michael weinberger, chief executive of ernst & young. still ahead, several republican
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presidential candidates say 4% growth will solve the nation's problems, but do the numbers add up? we have the details next. ♪
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several presidential candidates are promising to deliver u.s. economic growth of 4%. jed: there is not a reason we cannot grow at 4% a year and that will be my goal as president. [applause] growth in the 19 million jobs that comes with it. mr. christie -- governor christie: we have to get this country growing at 4% because we have to get this country to once again what my mother and father
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told me it was. pimm: 4% seems almost impossible to accomplish. michael mckee has been doing the math. i hate to disappoint jeb bush, but there are couple of reasons we cannot get there easily. there are two components. you can see on this graphic that both are declining. we saw a big rise in the labor force growth, which is the white line. for the last 10 years, that is been declining significantly. you can see productivity is also going down. it used to be -- well, since world war ii, the average growth has been 2.9%. economists now think with those factors we are closer to 1.5% to 2.5%. pimm: is it also because the
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size of the u.s. economy is gotten so large -- it is hard to move a bigger project? you need more people and more productivity, and that is not happening. there something the other candidates are saying -- the democrats, are they saying anything about war percent growth? andael m.: they are not, they are wise to do so because if you look back at history, they will perform better than republicans. it turns out under democratic presidents the economy has grown twice as fast as it has on a republican presidents. it has been democratic presidents with the exception of ronald reagan's second term perform the best in office. conversely, four of the five worst performances have come under republican presidents. pimm: is there any reason for this -- can you determine what it is democratic administrations have done to produce growth rates? michael m.: blinder and watson
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looked at it and could not find a partisan region -- reason, but it is luck and timing. recessions,ars, things outside of their control. there is not even clear evidence that you could adopt policies that will get you there. you can do immigration reform and try to bring more workers into the labor force. you can do tax reform, additional tax credits -- all of those things ronald reagan did and he only got to 3.9%. 4% be a realistic goal if we change the way we compute gdp? 75% is consumer spending and that includes spending on things like medical service and health care. michael m.: you can torture statistics, as they say, to tell you anything that you want. belth care spending will propping up a lot of that. it seems to be rising because more people are going to be retiring, need medical care, and
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that may boost edp some, that really what you need is -- and gdp some, but really what you need is labor force growth. we're not getting it. since the internet bubble burst, productivity has been struggling. pimm: thank you very much for enlightening us, michael mckee. it is time for the options inside. ramy? no? all right, well, i know you have been tracking with the markets are doing. the s&p 500, the dow, all moving higher. the dollar strengthening a little bit against the euro. the dow is up more than .6%. .6%.&p 500 gains more than of more than 12 points. buying shop.l, ace give us the options inside. ramy: we are joined by and i
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could derivative strategist at bancwest partners -- by an equity derivative strategist at bancwest partners. >> it has all of the big areas, fedex, rails, other transports. union pacific has another 7% to it. isy: you are saying it underperforming the s&p and the spread is the highest in a year, so what makes you think you will not go further down? anshul: that is right, this year it started to underperform and the issue -- the ratio is at a one-year high. the issue was because of a lot of negativity in the transport site now. you had negative earnings for
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fedex, for example, that did not help and fedex is the largest company. we think right now with the level of individual components stocks trading at the bottom, we are looking at good levels. this might be a good time to take a shot to the upside and of course we want to give ourselves a little bit of a buffer, even for the to the downside and we put our trade. our trade right now is trading at around 146. we want to buy the one at 53, hundred 60 call spread going up 153, 160 call spread going up to september. the net cost is only $.50 right now as of last night's closing. so, with this type of trade you have a 10% buffer to the downside. you participate fully to the downside in case the market starts to sell off even more, below 130, but you only need a 5% rally from these depressed
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levels to breakeven and a 10% rally to the upside would give you the max reward for what you put in, which is very small to begin with. in terms of the --ramy: in terms of the components are putting in, which other riskiest and which would you say are the safest bets? already reported a bad quarter. ups has been on a theme of a quarter that is really bad. to me right now there is a lot ise upside in case there earning support. if any of those things start to pick up -- now you have seen commodities go up. coal is turning around after being on a bear market for a
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long time. then you see some of the transport start to come back up level invel of -- bedded in the stock. it is a really good level. ramy: always great to see you. i wanted to go that where the markets are right now. basically, looking at all the markets, the dow, the nasdaq and ,he s&p are all up by about .7% carrying off their the -- gains. it is a five-month high, given a bully to the markets there. with all of that, do not going to her. there'll be much more bloomberg markets day after this short break. ♪ we live in a pick and choose world.
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only at a sleep number store. right now, find the lowest prices of the season, with the c4 queen mattress set only $1499.98. know better sleep with sleep number. anchor: welcome to the "bloomberg market day." you know who this man
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is, greek prime minister alexis tsipras, once again urging creeks to vote no and sunday's referendum even as he pushes a new compromise with creditors. we will have the latest life from athens. fiat chrysler outsells ford in the month of june, the first time it has ever happened in the united states. ephanie: the once my mtb? -- who wants my mtv? a midlife crisis for viacom. ♪ pimm: good afternoon. i'm pimm fox. stephanie: i'm stephanie ruhle, sitting in for bet

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